Is Bitcoin legal in South Korea? Or illegal?
- DDDOriginal
- 2025-03-05 19:03:01584browse
Korean Bitcoin Market: The Boomingness under Compliance Transactions
The Korean Bitcoin market has experienced unique phenomena such as "kimchi premium" and "rolling up" and "selling up", demonstrating the enthusiasm of Korean investors for cryptocurrencies. But investors still need to understand South Korea's Bitcoin laws and regulations.
Is Bitcoin legal in South Korea?
The answer is yes. The South Korean government is relatively open to digital currencies, with active Bitcoin trading and the market size ranks among the top in the world. However, South Korea has not identified Bitcoin as a legal currency and has strictly regulated its transactions, especially for illegal acts such as money laundering.
South Korea's cryptocurrency tax system covers capital gains tax (profits for sale of cryptocurrencies) and income tax (mining or trading activities). Tax rates float based on income levels (6%-42%), but low-income or long-term holders (more than one year) may enjoy tax relief.
Although South Korea introduced strict regulatory measures between 2017 and 2018, the government has also actively promoted the development of the industry in recent years, established the "Virtual Asset Risk Committee", and officially implemented the "Virtual Asset User Protection Law" on July 19, 2024.
Is Bitcoin illegal in South Korea?
It is not illegal, but is subject to strict supervision. South Korean laws do not prohibit companies from holding cryptocurrencies, but individuals and businesses must comply with relevant regulations when trading. Although the South Korean Financial Services Commission (FSC) denies that companies can use their balance sheet to purchase cryptocurrencies, they are not completely prohibited from holding. Personal transactions must be conducted on the registered cryptocurrency exchange.
South Korea's financial regulators are committed to strengthening supervision of virtual currency transactions, especially cracking down on illegal activities such as money laundering. Therefore, even if Bitcoin is legal in South Korea, transactions must be compliant to avoid any illegal activities, such as the use of Bitcoin for crimes such as money laundering.
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